BONDUELLE - Quarter 3 FY 2015-2016 Turnover: Ongoing solid growth in line with the annual objective

 BONDUELLE

A French SCA (Partnership Limited by Shares) with a capital of 56,000,000 Euros 
Head Offices: La Woestyne 59173 Renescure, France
Business registration number: 447 250 044 (Dunkerque Registrar of Businesses)

Quarter 3 FY 2015-2016 Turnover
(1^st of January - 31^st of March 2016)

Ongoing solid growth for quarter 3
in line with the annual objective

The Bonduelle Group's turnover for quarter 3 of FY 2015-2016 stands at 471.8 million of Euro, an increase of 3.-% on a like for like basis* and therefore up by 2.8% for the first 9 months of this financial year. Based on reported figures, the aggregated turnover remains virtually unchanged (- 0.4%), with a slight growth observed over this quarter (+ 0.4%).

Activity by Geographic Region

Activity by Operating Segments

Europe Zone

The Europe Zone activity experienced a slight decline over quarter 3. The national brands (Bonduelle, Cassegrain) performances were only partially offsetting a penalizing private label canned activity, due to the price decreases observed on 2015-2016 contracts, now effective and a slowdown in the delicatessen operating segment linked to historically high levels.
The frozen operating segment in the food service sector bounced back with growth and recorded 3 consecutive months of sales volumes increase, despite an ever challenging consumption environment.

Non-Europe Zone

The Non-Europe Zone keeps contributing significantly to the growth of the group, up by + 12.-% on a like for like basis* and by + 3.5% on reported figures for the 3^rd quarter of this FY, with accumulated increase recording + 9.1% on a like for like basis*. On a reported basis, the zone's turnover remained stable despite a 45 million of Euro adverse impact of exchange rates due mainly to the depreciation of the Russian rubble.
Albeit still affected by an adverse consumption climate in Russia, the zone continues to be driven by the development of North America and the competitiveness of the American/Canadian Dollar parity.

Highlight

Divestiture of the interest in UCR

The Ardo and Bonduelle groups, leaders in processing frozen vegetables in Europe, finalized on the 15^th of April 2016, the plan in which the Bonduelle Group is to sell to Ardo its equity stake (50%) held in the Ultracongelados de la Ribera (UCR) joint venture co-owned with Ardo, as announced on the 3^rd of February 2016.
Ardo retroactively acquired all Bonduelle shareholding on the 1^st of January 2016; along with the real estate assets of the site located in Valence, up to then property of Bonduelle. The sales of the interest, previously accounted by equity method in the financial statements of the group, will result in a pre-tax net charge of 2 million of Euro on the 30^th of June 2016. This transaction will, however, have no impact on the group's financial net debt.

Outlooks

The evolving business activity of these first 9 months, nevertheless allows, despite an ever demanding and volatile economic climate, to confirm the turnover growth objectives of 1.5% - 2.5% and a higher current operating profitability than the previous FY at constant exchange rates for the 30^th of June 2016.

* at constant currency exchange rate and scope of consolidation basis

Next financial events:

- 2015-2016 FY Turnover                                        :     4^th of August 2016 (prior to stock exchange trading session)
- 2015-2016 FY Results                                            :     4^th of October 2016 (prior to stock exchange trading session)